NWE - Earnings call transcript Q2 2022 | NorthWestern Corporation

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Travis Meyer

Good afternoon, and thank you for joining NorthWestern Corporation's Financial Results Webcast for the Quarter Ending June 30, 2022. My name is Travis Meyer. I'm the Director of Corporate Finance and Investor Relations Officer from NorthWestern.

Joining us today to walk you through the results and provide an overall update are Bob Rowe, Chief Executive Officer; Brian Bird, President and Chief Operating Officer; and Crystal Lail, Vice President and Chief Financial Officer. All participant lines are currently muted. have of we Q&A for presentation, session. the a time lot our After for that questions provide asking I’ll instructions at time. at [Operator Instructions] is website release and released, northwesternenergy.com. NorthWestern's results available have on been this our

release, this released also note company's by questions to our and premarket may statements. this We morning. contain comments presentation, forward-looking XX-Q that Please the responses your presenters press

also and included definitions As note The the be this and Financial the filings within the be our such, section I This SEC non-GAAP Bob of is year includes over found will of presentation X one non-GAAP Results today. that, also With slide direct harbor CEO, our NorthWestern’s presentation of this Rowe. today you in in provisions today’s at financial to the archived presentation. see second the presentation available being I'll Please can for to webcast hand will the and disclosures recorded. contained Please in beginning included webcast website. Eastern the replay safe measures. reconciliations disclosures, p.m.

Bob Rowe

employees. open our nice a the side yesterday But afternoon because Montana we County joining office. exciting above Had great on of was Kalispell where photograph delivery in really well. Montana in well. working and in hard meeting with team of County, we're growth with other board Generating It fact, last the County Board cover our know, area, corner you as had is Montana gas local the Kalispell, natural appropriate that's we're looking us. particularly deck taken Billings thank Yellowstone as we was for you're Good on the Kalispell, over represented Rimrock's at visit capacity and Yellowstone The to our is and that in you ensure very in in adequate NorthWestern because, our and Flathead generating and the the concluded Billings also the here, Station, work from in the seeing employees as contract but particularly

over big it then that, we're all to And have of we'll would financials, result of for to for stability. I'll all shared results a represented a all bit Crystal visit little highlights, with And now united as employees, labor start contracts we news turn pleased and more off multi-year and of much that with our Recent out we day the just came say So, purpose. the with back some Brian sense of off. that that providing with. some I attractions. the real of really and starting other a come about operating coming then very highlights,

$X.XX are quarter, million in-line XX.X our EPS or that non-GAAP or expectations net EPS income diluted and of financial with Our $XX.XX $X.XX share. includes per of for EPS diluted results the

growth annual full-year guidance long-term between per is between $X.XX and of we're rate diluted expected X% non-GAAP $X.XX Our X% and share. EPS reaffirming our and

and that it's multiple been the we In called times them. week. Bob by there track, all at and was on managing wonderfully Our capital we outside typically we Station the ribbon, doing that remains work, the $XXX on while despite neat XXXX job in live Glanzer are plan XX excellent an been go went cutting a moment with challenges all being May, are on generating SPP by the our has our powerful to Generating station Huron, megawatt is called the million folks story had Montana, at working were well for capital thrown every and

some very, in was we directional can Dakota major importantly, events, the of middle our bigger and tears response storms a severe for the And very Yellowstone customers that stories know the great in even all the and two did the was our watching Dakota a in events, We So, it's Dakota all of photographs events the doing. that particular. to significant what heard as was in you and really South doing probably work a employees this major. both job. catastrophic that in working really from we're both very but part do. just employee the the just grateful storms Montana the and weather, rare to of every track park, Yellowstone that find saw work as Park Xx We had River, it We intended should In along the restore you river South really Montana in and done South were and communities of hitting employees service to much very as great safely. catastrophic

were So, our to what doing they do. expected were – were just we doing folks

In record dividend, September our of of the terms per on XXXX quarterly shareholders of as will dividend, of XX. for payable share $X.XX XX, Crystal, off you. be to September

Crystal Lail

Bob. you, Thank

in that would from some is I'll the results net X.X at QX of or of you'll events The or lower a then on is $X.XX income line and XX.X actually QX XXXX more mentioned, with as little mention net by compared the items, for X, in significant bit I Bob As line into million detail XX.X after we XXXX noted, with thing which income coming $X.XX. QX XX.X in adjusting operational income at see improvement versus net get non-GAAP in million here Bob there of at quarter a as $X.XX. Slide at million, perspective, an look million

Slide to retail give here. more to earnings a performance our from you X solid Turning detail bit on volume. Really

some $X of course our the favorable expectations, driving of CREP and affecting of really litigation, the results. on here. the XXXX. items XXXX. I detail solid penalty on at usage with absence late some customer we leading line associated the the with on based GAAP depreciation that margin in by results that issued those You'll left that of items mention gas A Also, million, equity and XXXX, basis and we of then lower more by on XXXX, offset $X.XX Page comparative driven also primarily X, had then share to a those the bit The all operating QX is in natural the weather page down side would there off dilution versus of a offset growth and side. occurred in-line unfavorable higher again QX by favorable see in a

it take Page I'll So, of from left X. the side

to that in margins. X.X QF was It liability revenues. million to of but X.X year, favorite through us. thing mention column the to to This thing a accountant market deferred X.X we million. is have this other when thing. Here, favorable every for so see adjustment next was first go our is was margin transmission, there last my favorable, column million cost. impact is favorite This you'd is an I the there that lower year QX last electric year would X.X prior year, had related transmission negative our The we million the of I The of release here my

that $X.X there. is are transition improvement over seeing and see revenues that solid again, in actually impacting XXXX, absence favorable we You continuing QX of the XXXX and the but million results to removed of a slight

residential the favorable quarter, on should you'll really our quite solid I and offset usage the whether gas April fundamental whether contributing. on or electric as backs May, And for say, see and natural a of side, not volumes natural to is side. bit the they're gas on cooler electric Moving the commercial piece, and but the favorable then by residential industrial

X prior weather weather favorable. versus margin that was on again, April, would the X.X the volumes I reverse June. on million driven favorable and natural lot normal And favorable cooler versus May in period. natural million did gas there comment would I X So, a that's together by us bit a that and mention in to us side electric on gas million

a conditions that helping in mentioned bit I is with other The weather snowpack turned Montana, we broadly. wet with in we off talked hydro conditions as that has thing in that mention our April, about started QX and Bob and weather dramatically would quite

favorable really year in absence leading million in items or All to driven prior the X.X%. of $X that margin the of again by some lower

net driven Moving on for guidance that an side, XXXX, applies working out the expectations. Then expectations in adjusting then favorable side see our X.X for related of that left million on comment falls our Slide are to that legislation the GAAP in quarter on no the you'll overall with periods, the with costs GAAP of operating the operating or to you penalty X consistent a that reason of next X, us. we the insurance QX. XX.X adjusting line, higher out and is from basis. $X.XX we starting prior in-line to also laid million and or gives million We're the by of that bottom The headwinds Slide the weather would that XXX adjusting we but reconciliation. on again to slide, litigation recorded depreciation, Again, indeed longer income non-GAAP that, increase here higher penalty highlight, and continuing increase out that CREP expenses, from would but I I to

is related is $X.XX us by of of impacted legislation is that prior period. prior that certainly weather, XXXX to again longer it's or there the typical, no adjustment compared back but because So periods so basis weather applicable, liability significant. And and XX.X to our income non-GAAP gets net adjustment a obviously to and QF as we've added million QX by

removing after those, XXXX it's versus the million XX.X XX.X prior So, of QX period. in million in

fullness continued in driven dilution think on solid However, Montana and that At are much some from With flow energy Those about prior trend collecting versus had and of has here. think] [ph] Uri but from and also revenues a collection QX, in favorable $X.XX, line, by period income $X.XX line show cash Slide would strength driven a and gas, talked into well, but the by slight that PCAM. I to costs prior at X line, does [caused, perspective move about net offset the a of improvement. there by refunds occurred favorable, Storm share QX, that, we flow also period of Winter I of the that improvement the electric absence as improvement the both I that our cash basis.

the of on cash also that during of equity comment So, the our we quarter. outlook off back in taken by were continue here. to some to I we issuance, see Moody's strong flows that negative would

I year the turn that, half that, it to XXXX. first with over to with expectations would And in impact we Bob no you items the the based note that us of the off obviously that noted we release in-line press that, as slide in changes and noted I'll the guidance Brian. and to reaffirming this our XX, Slide are in we our to our open with to performance and is So, lead expect

Brian Bird

in before of slide Thanks, this capital investment. terms Crystal. XX, On Slide we've shared

over First of that we T&D the to being billion, and had XX% the years, foremost, and period. forward five next billion of years, X.X in about X.X two-thirds of we the rate X.X or over had a that growth that X.X CAGR billion, that of invested our When last five to are side up terms increases billion time business. look

modernization, that, associated half of of obviously really our grid system, and Yellowstone is think things the space in types the that third is maintain really capacity, of I remaining with generation County those plant. existing and

for thing next upfront that's tight our million. out on spite even small. of timelines chain receive, as materials on a from over making increasing that pointed slide, of happen. plan right this we're perspective, that our plan fact, the from We're Last relatively for say and we we're for that though but of we're years, and track capital a us the supply it's capital five course, still terms total prices a in that seeing longer XXX percentage significant So, investment Bob challenges, in in CapEx holding of certainly seeing terms XXXX still of doing of I'd

for a again the expect company. investment, rate years billion X.X five to to base that of next as that Speaking the we'll a growth result we X% of see annualized X%

need as of natural matter and forward looking result the case that we've gas an gas of Moving significant going that electric to really back file as and and natural primarily, in we're the side investment on to XXXX on investment of far over the last five Slide made fact Montana. XX, XXXX years going electric to rate on side, because

sometime in to obviously very file here. expect so that August, We soon very,

continue not authorized cash that we've our important to regulatory closer our to trying us and rate lag return, investment our support is what’s credit addition the capital. to to reduce of made, for earn compete flow certainly and In us trying invest and to we're ratings, but for only enable improve to

progress, as I County station we’ve Glanzer and up think making XX Station, is the Xx that, XXXX effectively the plant that in million to XX South in running. invested the XXX previously, in in just Montana, already addition megawatt our plant In project Dakota winter megawatt million generating plan. Yellowstone XXX Bob County is mentioned of complete approximately and the total and same the season, hopes towards advance to bigger, we've investment the XXXX, Yellowstone of

year resource Lastly, plans. for in a terms big of us

file resource by South And hand over to the half Dakota for to expect We the back and do to Bob. our here the shortly thing then it the second in end plan I'll Montana. of year same with that, very

Bob Rowe

last we've about when makes doing and became And company's cold some extraordinary I Brian having the fantastic obviously you. as thought never deep we been to and to fun. time you COO, work you of approach for Well, [sound] lot as open, talk but plans the as a our got succession, and out a bench Thank half almost the earnings President see COO. in coming has leaders. a months that Brian calls continue and the the the it [ph] talked well will of year. and a a as employees into results we over know field, job and spent our about year He respect to as him, next good getting managers of

and We're and whether what good good with both management failure has an as execution. of settle comes the measures and of I will industry as along and mentor been any Brian, the leader of tremendous effective he year, excited end think from be has step leading, one accepted Brian the resignation, I'd a of operation. efficient in we're been Board I would company my then CEO or Yesterday, be about eventually the at know, role the very all inside from executive come are started all company. the And is senior good success ahead. a of the as would you We not into I the successor at CEO. extremely my mine, my will the as Board friend a when think truly. team or

to And Brian, for going guess have deeply the to have [kick I'm the be can leaving rest deeply, of the the still to of at you too. year. you the company end will this I'm me [kick for around] still all – of I'll paraphrasing, the going about So and care who [ph] still know rest I year. you around] [ph] year to

for our your So Brian, do again, thank you congratulations. we'll all for your now to avoid company. questions. the best support And

Travis Meyer

And Thank you a few up. in have [Operator for already we that, the queue queued people Bob. like Instructions] it looks

Shar our will from first Pourreza. the We line of take call

Shar Pourreza

go. Can we me? Here you hear

Travis Meyer

Sure can, Shar.

Shar Pourreza

Travis, a go. you're you little There for technological Alright. me.

Travis Meyer

that. about Sorry

Shar Pourreza

to Talen now the parties judge an call Could of you kind you commence what's shed Talen's of actually being lot may is Oh, Houston, some of deadline hey, maybe of Talen say, coming correct and forced XX begin a guys. There's interest your August have in what displayed let's color about out arbitration. arbitration require a two, been else for written suggest have And bankruptcy to with, forced? sense which arbitration there's articles being next proceeding the one, or in the month? whether would to on other an engaging if plan maybe produce strip

Bob Rowe

August know the to July to essentially Talen I the We from Brian – was filed Pacific a that the the how things submit we requesting want and of to couple be respect There's for filed motion. will how with will on plans XX, a costs relief had August specifically a close those to filed to speak borne will be whether a motions on or this. and were operate costs say hearing any separately. on that Yes, XX, I'll ordered will and and is addressing alternatives owners going of Northwest state, proposal a on be XX. hearing

like moving the specific arbitration. know So, would we Obviously, to don't we outcome. towards be

say this I to at important customers mentioned this what to incredibly in the I of and resource just our time one opening would an grid that, stability and maintain slide, reasons Billings. serve Beyond the is

Gianforte with to good want to to you parties know, is as committed with find We Colstrip Governor them, think other I remain seeing work to want really solutions. all work open.

quite inside arbitration, or the are let to work whether do. that So, it's arbitration we what committed the they into outside resolutions need parties need to all

Brian Bird

in for this I to Colstrip think are uncertainty. perspective. period the all just other parties a know, with a would thing say Obviously, is, utilities forward, move time from we planning need you unhappy I

parties. not knowing all And on on is Colstrip the difficult so outcome

happening this, near are within at outside resolve so, future. or point there of says, in Bob are some discussions that either hopefully will and And we as arbitration the

to out, Billings and stays place to great continues the sure extremely job the some provide And our system time so, not resource total hard Bob pointed services a our us, resource it for continue but is to in to in and make working future. area, just we're to the be that for to

Shar Pourreza

later, And the or would Got the stand, need be terms where and of does kind it. were I sooner do it Colstrip, of to adopting [ph] rules] it if expect So, you guess, available? say, securitization than [ph]? you [XX] let's in for rather formalizing [it PSC legislation into

Bob Rowe

ahead resource of on with we've – this meeting the terms really that other note, cost effective. zero we even need that become point commission but really Brian? available And net goals, has focus fact our operate. to followed We've Yes. rulemaking, as the in continuing is moved resources at while our you in

Brian Bird

Good Bob.

Shar Pourreza

is a real beers Got been I buying questions congrats seriously, Brian's to start promoted? important actually That's And had. Brian, question Bob, it. you think have I Phase on the all you, that he's for Bob, do now going the just No. X.

Brian Bird

hard a be no. That'd

Shar Pourreza

See you guys.

Travis Meyer

next of from Greenwald We'll our call your should line Shar. lot, take of Ryan America. a Thanks open. Ryan, be Bank

Ryan Greenwald

Hey, can you hear now? me

Travis Meyer

Yeah.

Ryan Greenwald

to Brian, of Bob, And congratulations you. warm both

Bob Rowe

Thank you.

Brian Bird

Thank you, sir.

Ryan Greenwald

Appreciate all updates the here.

should upcoming about the magnitude kind about think we how adds of filing, that think the revenue we the As should be we August of expecting?

Bob Rowe

Crystal?

Crystal Lail

we appendix until have one think obviously, about, on you to slide base. talk then in gives but I the a too we we about have lots have this rate a give much before, information view talked file, we and Ryan, might even can't and do that we'll

natural is shows year, I an assist on we that ended think electric an it's and XX. being bit it of filing. a I'm where given you the gas

So, is, that investment to customers we need a have the serving we I in go thing lot earn of that's say would and on.

Ryan Greenwald

Got it mean, you. staff like complex could of thoughts Any pretty on the what I more contentious a seems filing and ahead the overall. be on conversations initial initial filing? based commission with

Crystal Lail

I They and I we obviously conversations to commission. staff would plan we've been just very having, productive file. the say, think, both with know

the about last that of there. was PCAM the market talk where we went prices talked One year things have and

of preview So, seen, filing call a they've it we I'll since last already that year. it, filed

So, case. to that'll [ph] rate the be a [piece]

know So, we the they some of And, they well. expect see of putting those where system. They amount of the know, filings that. and make you details into the MPSC investment with obviously we've annual know been things as

for and the our hold at costs. commission on coming it's recovery So, of of, of in say, in serving think, XXXX I and the side, your And of to really and when a is out staff you for review you regulation in complicated, already the XXXX things lot on think there been what what there. We've know to is but there is think basis, just customers. take will contentious, but the gas I things asking electric side, since you lots point just

it. hopefully, our through way we'll work So

Bob Rowe

in I would unpack it ways. three

that's costs, arguably handled through been quite flow Should straightforward. the separately, First, those but could be significant. have particularly supply costs,

the our gap side. base invested all a Crystal important. primarily both extremely mentioned, forward electric bringing just Second we've There's our base. that's the base piece, the on has elements as exactly And rate is case. rate gas Montana rate rate customers that between just that just infrastructure basic what and of reflected in to significant a actual serve and That's

comment align better investments the and there some done ability out that bucket third terms had to regulation will The just team is are of that many, those Montana is working just exceptionally really with see Last case is proposals you that in would would make other the there's states the to mainstream professional. on of how be the is doing. be policy what many in nothing

it's all from with folks be company. very filing to So, across quality high going a contributions the

Ryan Greenwald

can confidence your then the go your bit way? And you maybe that. to in the things litigation scenarios air around outstanding reaching with just Appreciate a permit, don't Great. if constructive lastly, potential respect and really outcome there talk quality about

Bob Rowe

in the It's in too question outcome the to Yes. district Billings climate ought challenging the a a to fact, that goes Department effects have permit what considered the and actually arguing and litigation Environmental climate outside will effects State Montana in process. been borders ought been, but in of to court early of say to be, of have state granting the Quality's the DEQs

judge you going and filings in making the and certainly really right does. one provision big our that the The provides remanded is case that to the the in the provides will are their can't and So, the your under and instructions paraphrasing. a department see And of this court also appeal. I'm have follow be a the other. we is same post ensures to to Obviously, right think but stewardship, helpful to the will clean parties livelihood. or a without thing brought environmental pursue the both sentence, then is And whatever Montana have litigation what part hearing interesting If environment. then constitution review this we'll of I are Friday. programs, living we

on profound overall, just facility Montana court of So, Billings, located be in on not Billings. here an located in economy your one would pretty district the consequences the adverse decision really

Ryan Greenwald

And Brian there. leave Great. both you of congratulations I to you. again. again Thank Bob, it will

Bob Rowe

you. Thank

Brian Bird

Ryan. Thanks

Travis Meyer

Williams do question. Well, from Shank the full-fledged sighting, we have has Ryan. a Thanks Elvis not an Siebert Ellinghaus Ellinghaus next it's Chris sighting.

Bob Rowe

sure. I’m It’s taught Chris Elvis’ who moves,

Chris Ellinghaus

be Brian. beg pardon. you to I Bob. Congratulations, go, really sorry We'll and your Bob see

Bob Rowe

you. Thank

Chris Ellinghaus

regional Can issues? a little because give color seeing of capacity coming] [Brian's bit on you're us [ph]. what Mostly you

Bob Rowe

part A challenging more couple in of pretty in extremely It [SPP] there the of Yes, be of PCAM, at this data there's Western of there's the I'm same continues [ph], an And commission done. are terms market, more So, work but in comments. morning lot market any. talking market. the Board answering will lot supply the it's know, [indiscernible], although on good a west, of about as work with are customers balance other be regional our with and happening among And Pool? an happening that big exposed done costs approaches. of challenging to tight the The And you put head front concerns more, what's market too. in time, being lot the we time that very what's market. than awful Power the spent some being reflected quite the as a of things a

are long-term. We participating in that

for hairy are outcomes good is But I near-term still pretty the think there. us. there some

Colstrip. the need about already County supply talked on and call the contract resources. on other until a We We plant on this through resources about implementation plan we're there. we Yellowstone moving next we've Montana to those So, and talked basis need

Brian? I right what the that warnings last where would of several I thing and that So, others say gap. for we years been have years sounding would the say, we were number were on we target. ahead are in a near of is term, wish closing that I

Brian Bird

but it slide help gap happen are I way, ability short-term state, lot by capacity to of on to our everything think, you would would the that I a that close for we've has add, be within on the the slide to within demonstrated of kind measures. helpful And thanks. us. that Bob, supply Yes. a side,

sufficient projects a and And long-term that on so, need by Slide supply a we're is about more to within certainly the on to XX, we from primarily our the existing And gap still but side needs, supply going chatting that if will, the our on close control Bob’s supply perspective. projects. way. a make investment have Attraction makes existing traction on And sense, we the to state you side. basis, obviously need to

have capacity we continues transmission on investment that, grow grow, and business Montana upward continues our as capacity] [ph] to both we is electric and there pressure it addition both of gas gas that. needed associated on [late electric and it eating side have the address and to into to transmission. our In certainly with to constraints

to to forward. sufficient going help able And being going have by so, to capacity provide Montana grow we're

So, there's well. as there investment needed

Bob Rowe

if turn South of being called Bob our example Glanzer quite benefit customers. Station you that's is SPP, then just the And to partly over to Dakota, by the actively an of as on

market as take need market, have and advantage you be that. a a into to move you do So, of to to resources able

to The is thing SPP our Montana? they what's have requirement in raised other notable Brian, their in reserve reserve XX%.

Brian Bird

do to out negative minus that still at of and to point was climb it Well, XX one have a from perspective. that time lot we in obviously but work reserve basis, we closed margin in short-term a

Chris Ellinghaus

you, dispatched sort to your or, being of Bob, on at expectations ask less point? more this I Glanzer know, or wanted is you

Bob Rowe

even on certainly more, on. say but or possibly I'd

Brian Bird

I draw expected little a more. much blocks. Actually, would be higher it right Bob, I bit knew but is know we than would say, mean, the a we upon, on how bit I

Chris Ellinghaus

little you a great. how the you mentioned Okay, Crystal, you bit give color Can more you hydro know, us precipitations recently? conditions. on, affected

Bob Rowe

I'll too a jump That to here's the four April. good into – river of much when of to actually lift I example. good feet sky closed big fell was had of in in cresting. We thing. a the on-site since feet turned on four after snow that at three was Three

and the went point Missouri down about all we concerned one in River. being snowpack So, up in from being quite at the pond, year full to

and of hydro shows you weather that the So, a have both blue do That's basins. across slide appendix in the lots conditions.

can from basin-to-basin. real say but tree risk That's we to some us see system. bit Montana snowpack before, a like the variation pay basins attention just heard snowpack and we this of is you of in that the little one things You've and into hydro mitigation built

Chris Ellinghaus

question. great. One Crystal… Okay, last

Brian Bird

think be I to obviously, Just condition hydro saw add hydro this from should from just perspective, year I pool thing, year. certainly the going one capacities than we basis, full hydro last better provided by back would a

at us. for So, fire that's course, That's you this we’re time year. in year at secondly, drought Montana in a but than maps sufficient feeling to last to Montana. state the a the And season, helpful in have changed expect looked we first was though quarter throughout better of still Montana, were position we much And when conditions dramatically. this

Chris Ellinghaus

Okay, QF the about great. adjustments excluding for year-over-year? Crystal, the process thought what's your the about question quarter, not

Crystal Lail

key the pieces piece giving, Certainly, there's Chris. of think different is And [indiscernible] I that QF that. of but liability is that

that, So, of model has have have pricing. actual, obviously, actual is and pieces the adjustment the you so to to there's so an expectation, which year output we a couple an each

that So, that's we something year. each leave in

Travis Meyer

I can something it's Crystal Chris, look to talking as is Crystal, interrupt at the about appendix this. Slide quick? XX, in maybe just

Crystal Lail

adjusted Travis show of done it a when out, for to it for you then first in, to piece, a of exactly the are? we've was adjustments pieces we So, for nice term. adjust of piece expectation and the and pricing Yes. your variability and out then there. escalation then to the is the an what adjustment that has you piece annual we've you a graphic what model left which piece the year, when end we the it, also there's is contract adjusted have last third that future And

The an for term was non-GAAP contracts sense during So, two adjust that out contract the pieces within adjustment just one typically when of we to did year, quarter. we referred period, adjust second ended first a the last annual left the We as the unique the model. I on do have in those of in item. which

be that. thoughtful try we about So,

I periodically. time, we had back think you that adjusted go previously also if in

seen from have in and Once [fall we of us we've annual left left basis. adjustment went on numbers kind to those So, that, you them [ph]. through] wouldn't an

Chris Ellinghaus

clear. Thank Congratulations. Appreciate Very Okay. very Alright. much. you it, guys.

Bob Rowe

Thank you.

Brian Bird

Thanks, Chris.

Crystal Lail

Thanks, Chris.

Travis Meyer

our from Sophie next Take at KeyBanc. call Karp

Sophie Karp

Hello? me? Can you guys hear

Travis Meyer

hear you, Sophie. can We

Sophie Karp

Bob will and for sure. Bob of both you congratulations missed Great. Brian, be to and you

Bob Rowe

very you Thank much.

Brian Bird

Thanks, Sophie.

Sophie Karp

rest yet, the You're of around at not still letting the year. right? We're off the you hook for

wonder a you position as that's extra given me have that energy would guys how reading define would herein I'm sure it [ph] in now, they that, read So, that is it the [Technical effectively, makes inflation credit into [ph]. qualify carveout anyway? I located And I for about brownfield apply your guess, Difficulty] but you that to as we it might [coal and appears which not it] dug my it you which bill, thinking is your the the an if to side] call right. It Colstrip from [just it question it energy and community, about that is about tax appears, how for have right? affect appears yet, a bill that much for think what

Bob Rowe

We're looking that. doing to actually forward

information and not job. set You're should right. up My are up gather brownfield pretty related or folks process already a if, We've There with participate. passes are and we identifying process. how that focus, fold of whether internally We because into might expectation running just doing where if those it a we is provisions. bill bill, the great this when would and infrastructure good we

Sophie Karp

a time there? Market discuss Exploratory [ph] over that maybe and I could Western you [joined] evolving this Group. if little all see you and do And how the bit, understand you're you your group Alright. joining

Bob Rowe

Well, a are the number in there different active of organizations West.

identifying of can you a up fill fill slide, fact, did we I all think In those. slide up a

So, [ph], there's the [imbalance the [indiscernible] market] head with market.

with metrics terms what incredibly a Northwest them the Pool. in that Power common along was Western adequacy that's talking been effort. leading initiative and We and that for think set we've evaluating They resources multiple Power important Pool other about the the been identifying of are important in The all what understanding is of strategies. exist in resource had reasons the then region,

are major two those efforts. So,

for would but groups its the initiatives. the governance addition that, of effectively transmission couple in about a Power far also look small How eastern shop edge We're structure. interconnect, participating of as on market a which what the Southwest should has we successful one in in of working structure is have been a our can another that down top many that's And very be so Western are West. with on a been strategies is, there and been in the work all I successful West those the Pool as a is we're posing the say Power has in spirit pretty has we're are the which In specific thinking And other who think not conversations Where and market interest. of I like? contractor Western Pool, done. having to collaboratively is are much around getting we contributing. we that would government successful What not

Sophie Karp

is a too Do to bridge in that a RTO] lifetime you far? [ph] think [Western see going we're or our

Bob Rowe

might continue be a going lifetime, don't on there. in ask, be a organized. hard get to Western do know you're formal will market to to if that evolve my of planner, transmission there's believe the I'm done you built absolutely is working and get but it to I I RTO, the if work is more going a lot line and full Well,

talking have the the break culture the on West be other, the and be is, working that Northwest coastal system a make and South it to your for pieces. good your be news to it it really Will will and might customers. together into for will done interior, people You are to and West working and down the but good is sense there wide, one-hand, get on together in entirely North things

Sophie Karp

Alright. Thank much. so you

Travis Meyer

Crowdell our at from Thanks, Mizuho. call next Take Anthony Sophie.

Anthony Crowdell

Bob. afternoon. Hey, good Brian. Congratulations, Congratulations,

Bob Rowe

Thank you.

Brian Bird

Thanks, Anthony.

Anthony Crowdell

just two I have questions.

want if of pending to of the I August you some PKM. just mechanisms the know But in think for rate word, know, – but if of about we change, potential maybe or them is filing some I One trying on if the question. is the you filing, that right would not I'm the don't decoupling, you so filing and maybe don't policy answer to understand I the like the rate run

maybe in plant and rate some under Yellowstone the construction have right You proceeding. known now, a testing measurable

by are how your maybe you rate approaching or, one this are about those Just on, of rate this like, filing thinking filing? thoughts you trying to or all fix issues

Bob Rowe

list that? think want to say I'll Crystal, to out. good you do a was just you you that laid add pretty

Crystal Lail

I and answering case expert about summary but thinking Bob of at is mind these approaching an in think questions, with. I the think you this decent laid things we're all a out

Anthony Crowdell

then, year, maybe or doing if filing thinking you this guess know, one the take filing a filing at list Yellowstone going do, then, maybe year can still another I you're you have I for one is about, in this filing? do company next thought crack of is each if that the to it

Bob Rowe

Well, efficient make that. our ultimately filing parties will include a and we regulatory do set have see Then what more of with commission system. and overall just the proposals we to what the to can modernize

see just see disagreements, even we to initial And standard the really always discussions we answer that. their we are can with things we having to But process. to agree questions, where won't until we going very that's So, to of discovery. narrow in start the views be then as to part know interested to like are see, a parties

Anthony Crowdell

And Yellowstone, year had know I – right as one booking Great. then are the Are slide, the amount far AFUDC? so forgot on earning I expenditures on number, How and that you date. to – you just but on lastly the now? that you non-cash

Crystal Lail

correct. is Right. AFUDC Non-cash

Anthony Crowdell

for congratulations forward so and to party. Thanks invite the the looking Again, much. away Great. going

Bob Rowe

Thank you.

Brian Bird

Thanks, Anthony.

Bob Rowe

buy We'll will round. that Maybe Brian see.

Travis Meyer

so we've back you, to it with Bob. And that, queue, I'll our hand exhausted

Bob Rowe

various we again, support really the Well, October the you out forward at visiting in do conferences your don’t I thank [indiscernible]. Brian analysts. of for and get and and again to look we've exhausted guess let

Travis Meyer

Thanks everybody.

Bob Rowe

Take care.

NorthWestern (NWE) 28 Jul 222022 Q2 Earnings call transcript